At the same time as the Cold War began in earnest, another confrontation with Britain was brewing. The Iceland Cod Wars were a series of confrontation in the 1950s and 1970s over fishing rights in the north Atlantic.

Reykjavik's unilateral declaration of an Exclusive Economic Zone that extended fishing restrictions started a conflict that culminated in Icelandic and British vessels ramming each other in the open ocean.

An agreement was finally reached between where the Britain accepted the Icelandic annexation to the detriment of Britain's already declining fisheries.

2) They gave us Bjork

Probably Iceland's most famous export, the singer is a national treasure. And after over a decade of her grating voice and "eclectic" style it's about time they took her back.

Her most famous song "It's Oh so Quiet"creeps back onto our airwaves every Christmas season - despite being released 15 years ago. And she wore a swan.

3) They took our money and won't give it back

In October 2008, three of Iceland's banks – Kaupthing , Glitnir and Landsbanki – tanked and 300,000 people were left unable to access their money.

And it wasn't just individuals that suffered – every person in Britain was hit by the crisis as local authorities lost £1bn – or 5pc of all the money from council tax.

While Britain was struggling with bailouts of its own, the Treasury was forced to pay out £7.5bn to British savers with internet accounts with Landsbanki's Icesave and Kaupthing's Edge and 2,000 savers in Guernsey who had £117m in Landsbanki accounts lost their entire savings with no compensation.

4) They run Hamleys the consumer's favourite 'tourist attraction'

People describe the London toy shop Hamleys as a British institution. But Hamleys is not British. It is an Icelandic-owned tourist trap. Baugur owns 75 pc of the business. Last year Bauger debts hit £1bn. So not only does Iceland run the most consumerist tourist attraction in Britain, it almost broke it - and lost 200 jobs.

5) No word for please

Iceland's language makes British manners impossible to impart - there is no word for please.

Icelandic does offer 45 different ways to say the word green, however. Useful.

6) They made granny jumpers cool

Icelanders don't want us to look chic. They want us to look like shapeless Icelandic grannies in their "lopapeysa" wooly jumpers.

7) They killed our 2010 European Championship Handball hopes

In the run up to London 2012, the British handball team needs all the practice it can get. But last week, our women's team was defeated twice by Iceland in Group Play qualifier matches for the 2010 European Championships.

Iceland took the first match in London 27-16 and the second match in Reykjavik 40-20, leaving Great Britain without a win in four matches and unlikely to qualify for the European Championships.

8) Lazy Town

Through LazyTown, one Icelandic man inflicted on Britain one of the most annoying children's TV programme of the decade.

The series was created by Icelandic gymnastic champion Magnus Scheving. The show's main character, Stephanie, spends her days with the super-healthy hero of the show – Sportacus – who hails from "an island in the North Sea".

Robbie Rotten, meanwhile, is always trying to get the kids to do evil things like eat junk food and stop exercising.

A total of 52 episodes of the show have been produced and syndicated around the world.

Not content with bankrupting their country, Iceland also had a go at bankrupting one of our best-loved football teams. Chairman Eggert Magnusson quickly made himself the most unpopular Icelander ever to grace the London's East End.

After his departure was criticised by new co-Chairman David Gold for deals like the £80,000-a-week contract for 30-year-old injury prone Freddie Ljungberg.

When he came out to defend himself, he claimed he had made all decisions with the "full knowledge and support of the owner." And the owner is? Billionaire Bjorgolfur Gudmundsson of course - born in Reykjavík, Iceland, a man who also had a 45pc share in failed Iceland bank Landsbanki.

10) Iceland the supermarket

Not technically Icelandic, but their adverts helped re-launch the career of Kerry Katona.